Photo: Burns Hargis Twitter
The man in charge of New York City’s public pension funds is urging shareholders to cast protest votes against two Chesapeake Energy shareholders in light of revelations about a lack of oversight of CEO Aubrey McClendon’s personal transactions. In a letter to shareholders obtained by Business Insider, John C. Liu, the city’s comptroller, writes that Richard K. Davidson and V. Burns Hargis, the only two board members up for reelection and who also happened to serve on the audit committee, deserve “withhold” votes for failing to exercise their boardmember duties.
“We believe recent revelations regarding previously undisclosed transactions, and the resulting 27% decline in the company’s share price, demonstrate the audit committee’s costly failure to act in the best interests of shareowners. We are particularly disturbed by the audit committee’s failure to review, approve or disclose Mr. McClendon’s personal loans secured by company wells, either in connection with the loans themselves or with the transactions between Chesapeake and the investment firms that provided the loans.”
Davidson is the former CEO of Union Pacific. He joined the board in 2006. Hargis is the president of Oklahoma State University. He joined the board in 2008.
Both board members are listed as independent.
Two weeks ago, the Wall Street Journal reported McClendon received financing from the president of BOK Financial, where Hargis remains a board member and previously served as vice president.